Silicon Valley self-driving truck technology startup TuSimple rang the opening bell on Wall Street Thursday (April 15) after raising $1.35 billion in an initial public offering (IPO).
The company sold 33.8 million shares of its Class A common stock at $40 each, under the Nasdaq ticker symbol TSP. The offering is expected to close on Monday (April 19), the company said in a press release. The company now has an estimated valuation of $8.5 billion.
TuSimple will introduce its autonomous semi-trucks in Arizona and Texas, where the company also has offices, according to its website. The offering was led by Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co.
With backing from UPS, Navistar and Traton, TuSimple’s trucks are due to go into production in 2024.
In its filing with the U.S. Securities and Exchange Commission (SEC), TuSimple said the global truck freight market is worth about $4 trillion. The startup’s technology was designed for semi-trucks and the company said it has created the first Autonomous Freight Network (AFN) with partners that include shippers, carriers, railroads, freight brokers, fleet asset owners and truck hardware firms.
“We believe that our technology and our AFN will make long haul trucking significantly safer as well as more reliable, efficient and environmentally friendly, creating significant benefits for all who rely on the freight ecosystem to deliver essential goods,” the company said, per the filing.
TuSimple announced its plans to go public earlier this month. The increased demand for more trucks on the road delivering goods has fueled pay boosts and signing bonuses to address a shortage of drivers. The pandemic caused waits for packages across weeks instead of days and even as the world moves into a post-COVID-19 state, logistics are still bottlenecked.
Selected by EFXA